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Speaker 1: I will be plugging in a back heating pad.

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Speaker 2: It's nassy.

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Speaker 1: I'm not trying to show off or anything.

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Speaker 2: You can't prepare.

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Speaker 1: My friend told me this weekend that the lower left

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Speaker 1: part is where your emotional stress is. So I don't

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Speaker 1: only feel like I'm like emotionally stress too much. All right,

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Speaker 1: Tony Michael, I want my name on an F one car. Okay,

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Speaker 1: And I know you're the person to talk to about this,

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Speaker 1: and actually, let me rephrase. I want to put my

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Speaker 1: face and my name because what good is it if

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Speaker 1: you don't see the face? You know this? How much

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Speaker 1: would that cost me? How long would it be on there?

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Speaker 1: Can I just do a race if it's cost effective.

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Speaker 1: I'm not picky. It doesn't have to be front and

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Speaker 1: center on the car. It could be on one of

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Speaker 1: the wheel hubs or the little wing, or even a

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Speaker 1: decal on the driver's helmet. Doesn't have to be Ferrari,

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Speaker 1: could even be hass I love that.

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Speaker 2: In the same sentence, he said, I'm not picky, but

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Speaker 2: I just want my face go.

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Speaker 1: Yeah, And if we happen to mention my TikTok handle,

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Speaker 1: Michael Costa underscore that's not gonna hurt anybody. Okay, I'm

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Speaker 1: not as happy as I can be in my life,

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Speaker 1: and once this happens, that will fill the void. Help me?

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Speaker 1: Can you help me with this.

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Speaker 2: Theoretically? Yes?

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Speaker 1: Great, I'm all about theory for my heart podcast one

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Speaker 1: on one Studios and Sports Illustrated Studios.

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Speaker 3: This is choosing sides one.

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Speaker 1: Wow, Tony, what is the business model of F one?

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Speaker 1: Is it even right to call it a business? If

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Speaker 1: it's a business, then somebody has to own it. In basketball,

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Speaker 1: nobody owns the NBA, per se. I mean, I think

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Speaker 1: it's individual teams are privately owned and a franchise is

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Speaker 1: collectively owned by all of them. I do remember season one,

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Speaker 1: Lily told me about this one guy Bernie, former Formula

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Speaker 1: one boss Bernie Echoson, has been given a seventeen month

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Speaker 1: suspended jail sentence after pleading guilty to fraud. Who sold

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Speaker 1: F one? What does that even mean? How can you

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Speaker 1: sell it in the first place? I can't sell basketball? Right?

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Speaker 2: No? Yes, these are some great questions, and I think

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Speaker 2: this is where we're going to get into a lot

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Speaker 2: of fun. Let's take these questions one by one, and

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Speaker 2: today let's dive into Formula ones. Weird and quirky and

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Speaker 2: at times feeling like a sport that's lost. Maybe it's

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Speaker 2: moral compass, but we're going to look at the business

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Speaker 2: model of Formula one and all the different layers into it.

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Speaker 1: I should understand that because my moral compass is longer.

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Speaker 1: The following is disturbing.

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Speaker 3: Footage from Michael Costa's comedic archive.

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Speaker 1: Someone asked you for a favor, Say it with yes,

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Speaker 1: with a smile on your face, and then absolutely botch

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Speaker 1: the favor. Hey can you pick my kids up at daycare?

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Speaker 1: I would love to do that for you. And then

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Speaker 1: you just don't ever pick those kids up. They'll never

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Speaker 1: ask you again.

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Speaker 2: There she is, Hello, Hello, lovely, how are you doing?

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Speaker 2: I am good to help us with some insights into

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Speaker 2: the business model of F one. I've asked Elizabeth Blackstock

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Speaker 2: to join us.

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Speaker 1: Hi, Elizabeth, how would you describe yourself?

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Speaker 2: What's your job? And how does F one fit into

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Speaker 2: your wonderful world?

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Speaker 4: It's such a big question. F one is everything I think.

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Speaker 2: I love that.

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Speaker 4: The motorsport journalist and a historian.

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Speaker 2: She's also the primary American contributor to Planet f one.

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Speaker 2: She's written books about F one, and she's even starting

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Speaker 2: her very own podcast, Deadly Passions and Terrible Joys, all

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Speaker 2: about the weird scandals and dramas and the chronicles of motorsports.

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Speaker 1: There's no shortage of those.

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Speaker 2: And Elizabeth is a longtime Formula one fan herself.

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Speaker 4: When I think back to twenty fourteen, that was the

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Speaker 4: first ever Formula One race, I went to the US

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Speaker 4: Grand Prix I was. I was eighteen years old, like

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Speaker 4: going having I thinking I'm going to get this out

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Speaker 4: of my system, like I'm gonna watch race cars and

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Speaker 4: be done. And that did not happen. But I can

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Speaker 4: remember being at the track on race ding kind of

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Speaker 4: having the run of the place. It was sparse, it

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Speaker 4: wasn't super busy, there were no lines for things. There

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Speaker 4: were certainly no lines for the women's bathrooms. Suddenly it's

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Speaker 4: just this massive explosion where people are aware of what

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Speaker 4: this sport is. In the past, i'd like mentioned something

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Speaker 4: to a professor like Hey, I'm taking a day off,

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Speaker 4: I'm going to race somewhere, and they would have no

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Speaker 4: idea what I was talking about. And now, like I

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Speaker 4: go outside and even in the small town I live

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Speaker 4: in in Texas, there's people with their red bull hats

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Speaker 4: on because they're rooting for Sergio Pariz or their Ferrari

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Speaker 4: get up. It's just become so huge here in such

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Speaker 4: a very short space of time, Americans are getting it,

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Speaker 4: which is it's nice.

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Speaker 2: How would you explain to a new fan how teams

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Speaker 2: make money, how spumses make money. It definitely feels when

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Speaker 2: you look got the sport that there's a lot of

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Speaker 2: money being thrown at the sport, and there's a lot

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Speaker 2: of money being invested in the sport. But how does

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Speaker 2: anyone in this industry actually make money at the end

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Speaker 2: of the day.

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Speaker 4: That is such a good question.

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Speaker 2: It's a big question.

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Speaker 4: It is it is not easy to make money in

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Speaker 4: Formula one, no matter how many millions of dollars you're

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Speaker 4: swimming around in it at all times. I think in

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Speaker 4: this modern era we've seen a big jump in profitability

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Speaker 4: for the sport overall as the company itself. In the past,

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Speaker 4: Formula one was just kind of like a way for

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Speaker 4: rich drivers to have fun. These were like kind of

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Speaker 4: noble gentlemen who had the money in the access to

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Speaker 4: get cars.

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Speaker 5: You might have to have a few, Bob, you didn't

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Speaker 5: have to be super rich.

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Speaker 2: This is Matt Bishop, English journalist offer novelist and a

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Speaker 2: true fixture of theform paddock.

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Speaker 5: You could buy a Maserati two fifty if one of

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Speaker 5: the most beautiful full one cars there's ever been. But

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Speaker 5: if you were someone like Horace Gould, who wasn't particularly

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Speaker 5: quick but had a business, wasn't minted, but was just

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Speaker 5: somebody who did quite well and had a bit of

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Speaker 5: money and loved motor racing. So he bought a two

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Speaker 5: fifty f Maza and he went racing in it, not

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Speaker 5: very well, and he didn't have to do all the races.

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Speaker 5: He didn't have to take it to Argentina if he

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Speaker 5: thought that would be too much of a pain in

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Speaker 5: the bum to do that.

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Speaker 4: But that wasn't really enough to sustain a massive growth

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Speaker 4: of the sport, and especially when smaller manufacturers became interested

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Speaker 4: in competing kind of you know these backyard teams that

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Speaker 4: had sprung up, especially in England, it was like, oh,

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Speaker 4: we can't afford this because we're not independently wealthy. What

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Speaker 4: do we do now? And now it's currently profitable because

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Speaker 4: of some very aggressive TV deals that were struck by

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Speaker 4: Bernie Eckelstown, who is certainly a man.

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Speaker 2: We always say like love him. I hate him. He's

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Speaker 2: definitely changed the sport.

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Speaker 5: When I was at school in the seventies, I was

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Speaker 5: the only one who liked Formula one. I loved football

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Speaker 5: as well, but my mates only liked football. But they're

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Speaker 5: like cricket and rugby and other things snooker, believe it

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Speaker 5: or not, but not Formula one. It was only me

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Speaker 5: and you couldn't find it written about on the newspapers,

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Speaker 5: and it wasn't on the telly. And it was Bernie,

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Speaker 5: Bernie Eclestone who realized that really Formula one could be

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Speaker 5: taken to the world via two industries now which you

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Speaker 5: can't really monetize in the same way, tobacco and television.

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Speaker 4: I think honestly, most of Eclestone's career was this kind

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Speaker 4: of slow build that was developing profitability for Formula one.

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Speaker 4: So he tried his hand at racing when he was young,

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Speaker 4: realized he wasn't good at it, and then was like,

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Speaker 4: actually I can wheel and deal pretty well. Let me

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Speaker 4: do that. I don't know if anyone if you've ever

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Speaker 4: seen this photo that goes around occasionally in the late

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Speaker 4: nineteen sixties. It's the Austrian driver yachin rent and the

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Speaker 4: side of his helmet is the phrase this space for

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Speaker 4: let That's because he was managed by Bernie Eclestone, who

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Speaker 4: was one of the very prototypical examples of trying to

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Speaker 4: seek sponsorship in a sport that previously was just country

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Speaker 4: colors and national pride and you know, manufacturer dominance. It

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Speaker 4: wasn't about companies, it wasn't about sponsorship, and that was

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Speaker 4: the first key that kind of changed the name of

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Speaker 4: the game. Lotus then took Yok and Rin Don as

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Speaker 4: a driver, got their first massive sponsorship, changed the.

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Speaker 1: Name of the game. I'm curious what was that first

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Speaker 1: sponsorship deal they got, Like, who is it with?

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Speaker 4: Lotus got the Gold Leaf Embassy sponsorship. The tobacco company

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Speaker 4: really made everyone upset because they thought it was cheapening

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Speaker 4: the sport by you know, promoting a tobacco brand and

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Speaker 4: advice on their cars, instead of it being this noble

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Speaker 4: pursuit that formula one supposedly should have.

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Speaker 1: Been remember about.

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Speaker 2: Well, well, well the table today one other well we

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Speaker 2: can't really call this on a fun fact, but it's

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Speaker 2: actually very sad fact.

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Speaker 5: The normal continuum of human events as a beginning and

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Speaker 5: an end.

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Speaker 6: Jochen Rint is dead.

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Speaker 2: Soon after securing that first ever F one sponsorship deal.

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Speaker 2: Johann Hint actually crashed and died in the practice session

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Speaker 2: in the Monsa Circuit in Italy.

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Speaker 1: Jeez.

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Speaker 2: His good friend and biggest rival, Sir Jackie Stewart, a

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Speaker 2: man who we will definitely come back to in several

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Speaker 2: times during this season, was, as you can imagine, absolutely heartbroken.

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Speaker 7: Yochen was perhaps my greatest friend and motor racing I

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Speaker 7: perhaps feel this sadder at this.

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Speaker 6: Moment than either we were done before any race.

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Speaker 2: Ryan was actually leading the Driver's Championship when he was killed,

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Speaker 2: and this was towards the end of the season, so

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Speaker 2: even though he passed away before the season concluded, he

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Speaker 2: actually went on to take the championship. So this makes

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Speaker 2: him not only the first driver to secure a spot,

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Speaker 2: but also the only driver in Formula One history to

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Speaker 2: be posthumously awarded the Formula One Drivers Championship.

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Speaker 6: He will have won the world championship.

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Speaker 3: The manner of his winning it illustrates the randomness of

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Speaker 3: human experience.

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Speaker 1: Okay, dark interlude here back, sorry to do this, but

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Speaker 1: back to the business model. So Lotus gets that first

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Speaker 1: sponsorship from a tobacco company. What's next?

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Speaker 4: I think the next step. Honestly, Bernie Echostone went bigger.

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Speaker 4: He bought the Brave and Formula one team, invested so

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Speaker 4: much into making that a world championship team, but in

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Speaker 4: the meantime was also establishing something called the Formula One

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Speaker 4: Constructors Association, which is essentially what the Formula One group became,

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Speaker 4: and it was through that association that he did battle

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Speaker 4: with the FIA to establish these incredible forms of revenue

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Speaker 4: sharing for the teams.

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Speaker 2: Back in the day, when we had qualifying session, it

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Speaker 2: wasn't actually just qualifying to know if you were going

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Speaker 2: to start P six, P seven, p twenty on the grid.

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Speaker 2: It was actually to know if you could qualify and

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Speaker 2: were fast enough to actually go racing on Sunday because

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Speaker 2: we had a lot more teams and a lot more

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Speaker 2: drivers because it didn't cost as much as it does today.

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Speaker 2: And the other thing that you would happen is people

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Speaker 2: would just be like, I'm not going to show up

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Speaker 2: on Sunday. I'm good, I've got you know, kids kids'

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Speaker 2: birthday party, i don't need to come, which you can't

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Speaker 2: actually make money guaranteeing a race if you can't guarantee

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Speaker 2: that the teams actually show up and the drivers show up.

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Speaker 2: So that was the essential idea behind the Concord Agreement

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Speaker 2: which they've signed again I think till twenty twenty six,

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Speaker 2: which guarantees that these ten teams that we have on

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Speaker 2: the grid are going to show up, they have enough

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Speaker 2: money to keep paying to drive, and that the drivers

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Speaker 2: are going to show up as well.

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Speaker 1: It seems like a no brainer show up to work,

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Speaker 1: show up to work. But as someone who just lived

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Speaker 1: through six months of a writer strike, if people don't

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Speaker 1: get paid they don't show up to work, great, you

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Speaker 1: know what I mean. You got to show up, and

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Speaker 1: so there needs to be rules in place to make

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Speaker 1: sure work happens.

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Speaker 2: Exactly, Bernie, there you go. Not something you'll hear often

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Speaker 2: these things.

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Speaker 4: It was a genie's move. I think that was really

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Speaker 4: the big like kind of trajectory that time period from

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Speaker 4: the late nineteen sixties into the eighties where we really

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Speaker 4: kind of started to see this massive influx of cash

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Speaker 4: and having this standardization and regular income becoming prioritized because

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Speaker 4: no one was just independently rich anymore. He wanted that

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Speaker 4: money to actually develop a team.

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Speaker 2: Okay, hold on, before we move forward, I think we

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Speaker 2: need to take a little step back and explain the

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Speaker 2: trifecta of the sport that I think is really important

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Speaker 2: to start after the three biggest, most influential bodies the

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Speaker 2: interplay with each other, which would be the FIA, Liberty Media,

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Speaker 2: and FOAM, and they each play very separate but equally

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Speaker 2: important roles within the ecosystem of Formula one. FIA stands fortomobile,

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Speaker 2: which is think.

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Speaker 1: I'll say it, and now let me ask it again.

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Speaker 1: What does it stand for?

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Speaker 2: Federation Inational of Autos as basically.

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Speaker 1: Wow, of all the autos of Federation Liberty Media. That

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Speaker 1: sounds very broad, very general. That sounds like the name

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Speaker 1: of a media company in a horror film.

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Speaker 2: Yeah, if you want to.

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Speaker 1: In FOAM, which is fear of missing out, fear of.

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Speaker 2: Missing out, that's what standsible. It's Formula one management, so basically.

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Speaker 1: A lot of governing bodies.

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Speaker 2: So let's start with the FI.

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Speaker 4: The FIA is the kind of international nonprofit organization that

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Speaker 4: sanctions Formula one race is to make sure that they

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Speaker 4: are all run in the same rule set and to

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Speaker 4: make sure that every team is operating in the same way.

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Speaker 1: You don't hear nonprofit a lot no in f one,

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Speaker 1: in fact, that seems to violate everything the foundation of

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Speaker 1: F one. Yes, yeah, interesting.

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Speaker 8: I just wanted to pull up this quote I found

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Speaker 8: online from this official F one document.

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Speaker 1: Okay, yep.

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Speaker 8: F one mission statement to leave a legacy of positive

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Speaker 8: change wherever we race, enriching local communities and economies and

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Speaker 8: supporting the natural environment.

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Speaker 1: I think that's lovely inspiring.

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Speaker 8: So yeah, this is this is not about money, Michael.

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Speaker 8: It's about making the world a better place.

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Speaker 1: One of my favorite parts of F one is how

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Speaker 1: profit and capitalistic it all feels. It's okay, like we're branding,

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Speaker 1: We're going, We're fast. It's not exactly exactly.

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Speaker 4: It's an outside source. It doesn't just sanction F one.

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Speaker 4: It sanctions i think, over four hundred different series around

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Speaker 4: the world to greater or lesser levels of importance than

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Speaker 4: F one.

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Speaker 2: You will always hear the fans getting really angry with

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Speaker 2: the FIA because they're constantly changing the rules. The way

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Speaker 2: they regulate is constantly shifting. The fans are always unhappy

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Speaker 2: with the fines that they give the drivers.

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Speaker 6: Can we get your reaction to the reprimand and the

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Speaker 6: fine that you received from the stewarts this morning?

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Speaker 2: You might have remember hearing Max Verstappen jokingly saying once

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Speaker 2: he got a fine, Well, I hope the FIA enjoys

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Speaker 2: a nice dinner and drinks on me.

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Speaker 5: Hope they have a nice dinner and a lot of wine.

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Speaker 2: So the FI is heavily responsible for drafting, regulating and

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Speaker 2: enforcing the rules and the regulations. That's why the fans

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Speaker 2: always get angry on them. But their whole thing is

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Speaker 2: also safety and security. So when you look at how

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Speaker 2: the sport has evolved over the years in terms of

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Speaker 2: safety and security for the drivers, the FIA is at

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Speaker 2: the pinnacle of pushing for that.

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Speaker 1: People can die in the sport. Yes, that changes everything.

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Speaker 2: It changes everything. So Jackie Stewart was one of the

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Speaker 2: drivers that has often pushed for that. He also pushed

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Speaker 2: for a union of drivers, which is important to note

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Speaker 2: in the evolution of Formula one. He still remembers the

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Speaker 2: days when he would travel with the sport and he

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Speaker 2: would always bring a black Tux with him because you

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Speaker 2: never knew whose funerals you would attend, which is bleak

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Speaker 2: and I'm delighted to say that that is no longer

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Speaker 2: the case these days. It's still a danger.

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Speaker 1: Sport also, do you wear tuxedos to a funeral?

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Speaker 2: I don't know, Maybe a black suit? Yes, did I

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Speaker 2: say tuxedo?

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Speaker 1: You said tuxedo. But I don't know if it's like

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Speaker 1: in different countries.

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Speaker 2: Maybe you want I think you wear a black suit?

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Speaker 1: Yeah?

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Speaker 8: Can I ask a bit of a controversial question here?

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Speaker 8: It is there like an inverse relationship between how safe

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Speaker 8: it is and how interesting the sport is. It's too dark?

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Speaker 1: No, it's not too dark. I think it's an excellent question.

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Speaker 2: I don't know. I have a weird thing with this.

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Speaker 2: So I think as humans we just enjoying people hurting

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Speaker 2: themselves is just something that I struggle with. But I

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Speaker 2: think the crashes in Formula one are so for lack

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Speaker 2: of a better word, explosive and in your face and

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Speaker 2: shocking that it does draw you in.

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Speaker 1: It's an integral part of the sport. Come on, you

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Speaker 1: can't deny that, Okay. I think this is a good

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Speaker 1: time to take a short break. Listeners. You can use

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Speaker 1: this as an opportunity, as companies are pushing their products

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Speaker 1: on you, to contemplate your own mortality and appreciate the

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Speaker 1: fleeting miracle that is life. That's what I do typically

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Speaker 1: during commercial breaks.

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Speaker 8: Think you've just summed up F one in a sentence there, Michael,

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Speaker 8: I'm brilliant.

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Speaker 2: Okay, we're back, and now let's talk a little bit

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Speaker 2: about foam, should we.

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Speaker 1: Yeah, because if we don't, I'm going to have foam.

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Speaker 9: MO.

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Speaker 1: Wasn't sure you guys heard my joke the first time.

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Speaker 4: FOM is Formula One Management. Formula One Management is essentially

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Speaker 4: the company that distributes those marketing and world feed rights

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Speaker 4: for Formula one. So that's the one that kind of

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Speaker 4: goes out and sells different aspects of the company to

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Speaker 4: people and manages all of the media rights.

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Speaker 2: They're also the owner of the name and the rights

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Speaker 2: of Formula One. They own the name for Formula one

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Speaker 2: and name the right. Their objective is essentially to drive

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Speaker 2: commercial success.

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Speaker 1: They wanted American audiences.

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Speaker 2: They got it.

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Speaker 1: They wanted it, and they got it. And maybe you

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Speaker 1: don't just mess with unregulated capitalism because here it comes.

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Speaker 2: Here it comes.

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Speaker 1: Other countries always think they want to dip their toe

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Speaker 1: in American capitalism. It is a beast. It is a beast,

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Speaker 1: and it's coming for you.

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Speaker 2: I'll spit you out when it's done with it. And

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Speaker 2: that's where Liberty Media comes in.

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Speaker 4: Liberty Media is the American company that purchased essentially the

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Speaker 4: FOM and those management rights from Bernie Eclestone, who had

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Speaker 4: previously been in charge of that company.

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Speaker 1: Every one of my companies has used that leverage to

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Speaker 1: boost up equity returns.

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Speaker 2: That is John Malone, chairman and largest shareholder of Liberty Media.

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Speaker 1: It doesn't mean that that's obeyed strategy, particularly if you've

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Speaker 1: been able to lock in long fixed rates. I'd be

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Speaker 1: a little freaked out if Viacom CBS owned the NHL.

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Speaker 8: I mean, I just want to drive this home to

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Speaker 8: all of the American fans. You've just been played and

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Speaker 8: manipulated by a corporate American company yet again.

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Speaker 2: Yet again.

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Speaker 1: You know, YOHI walk outside right now, there's somebody wearing

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Speaker 1: a fucking Jack Daniel's hat, or a Dilly Dilly T

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Speaker 1: shirt or a Yankees bag. We were all being played

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Speaker 1: all the time, understanding you're being played and choosing what

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Speaker 1: game you're playing in. I'm okay with that, amen.

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Speaker 4: Liberty Media did want to tap into the American market.

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Speaker 4: I think it really understood that Formula one was closed

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Speaker 4: off in Bernie Eclestone's era. Eclestone had a tight rain

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Speaker 4: on all of the ways that Formula One was perceived,

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Speaker 4: which included a lot of things, you know, even banning

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Speaker 4: the use of social media in the paddock. Liberty Media

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Speaker 4: came in and saw that these were very restrictive things

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Speaker 4: that were actively hurting the image of the sport because

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Speaker 4: drivers couldn't share things, influencers couldn't come to an event

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Speaker 4: to share things, Journalists were very limited in the things

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Speaker 4: that they were able to say for fear of losing

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Speaker 4: their jobs. Liberty Media opened it up to the public

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Speaker 4: and was the reason why they got Netflix involved to

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Speaker 4: create Drive to Survive, the series that has essentially changed

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Speaker 4: the name of the game for Formula One. It opened

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Speaker 4: up the personalities and the underworkings of the sport a

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Speaker 4: little bit more for people to see, so that you know,

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Speaker 4: there's more to connect to than just what happens on

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Speaker 4: the track. Watching cars going circles is not always the

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Speaker 4: most compelling for people, but I've found that you can

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Speaker 4: really get a wider audience involved when you tell them

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Speaker 4: the stories of the people driving those cars, and that

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Speaker 4: is what Liberty Media did. It just so happened that

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Speaker 4: the American audience was ripper and ready to go to

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Speaker 4: latch onto that during the COVID nineteen pandemic.

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Speaker 1: Let me get this straight. An American media company owns

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Speaker 1: F one, but the FIA and the FOAM are other

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Speaker 1: governing bodies that really can control things as well.

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Speaker 4: Yes, it's a web of wildness all around.

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Speaker 1: Why would I expect it to be simple?

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Speaker 2: It's not a simple Yeah, no, inform one anyway?

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Speaker 1: Yeah, who makes money here? Is it a company? Is

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Speaker 1: it the driver? Is it the principle? Is that what

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Speaker 1: they call them? And can you make money an F

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Speaker 1: one or is it like buying a vineyard? You make

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Speaker 1: great wine, but you lose a lot of money and

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Speaker 1: you got something cool they show your friends.

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Speaker 2: It's a great question.

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Speaker 1: I ask great questions.

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Speaker 2: I know you do. That's why that's good questions.

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Speaker 4: There's this saying in motorsport that it takes two million

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Speaker 4: dollars to make a million dollars, So everything you kind

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Speaker 4: of put in you almost expect that you're going to

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Speaker 4: lose money. It makes sense for like a Mercedes to

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Speaker 4: take out a challenge in Formula one to raise their

427
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Speaker 4: cars to be really fast. Because Mercedes sells road cars.

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Speaker 4: It looks great for them to have, you know, successful cars,

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Speaker 4: it looks great for that. It looks great for them

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Speaker 4: to have technology that they can say was developed in

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Speaker 4: Formula one. With Red Bull, it makes sense that this

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Speaker 4: high octane company that loves adrenaline has something huge in

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Speaker 4: the you know, one of the craziest, fastest sports that

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Speaker 4: there is. You're not really making a ton of money.

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Speaker 4: You're mostly just kind of trying to stay alive and

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Speaker 4: hope it all works out for the best. But it

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Speaker 4: you know, if you've noticed, it can be really you

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Speaker 4: can if you have a team like say Williams, a

439
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Speaker 4: former world champion that slips down the rankings one year,

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Speaker 4: they really struggle to claw their way back up because

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Speaker 4: they don't have enough money to continue developing their cars.

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Speaker 4: It's like it is just kind of it's a passion

443
00:22:52,840 --> 00:22:55,439
Speaker 4: project for a lot of people. When people ask me

444
00:22:55,480 --> 00:22:58,280
Speaker 4: what I wanted to do with my English degree from college,

445
00:22:58,320 --> 00:23:00,240
Speaker 4: it was a very similar answer. It was like, I

446
00:23:00,240 --> 00:23:02,840
Speaker 4: will find a thing that makes sense to me and

447
00:23:02,880 --> 00:23:06,040
Speaker 4: that matters to me, and I will do that like wholeheartedly.

448
00:23:06,200 --> 00:23:08,040
Speaker 4: And it's very similar with Formula one.

449
00:23:08,200 --> 00:23:11,399
Speaker 2: So as an American Michael, you might have heard about

450
00:23:11,440 --> 00:23:15,520
Speaker 2: Andretti as a name. Yeah, So Andretti are one of

451
00:23:15,520 --> 00:23:18,200
Speaker 2: those teams that has been really interested in joining the GRIT.

452
00:23:18,720 --> 00:23:21,680
Speaker 2: So there's an opportunity in twenty twenty six to add

453
00:23:21,760 --> 00:23:25,879
Speaker 2: more teams to Formula one. Now the FIA says that

454
00:23:25,920 --> 00:23:28,400
Speaker 2: you can have up to thirteen teams in Formula one,

455
00:23:28,640 --> 00:23:31,639
Speaker 2: which means twenty six drivers on the GRIT. The reason

456
00:23:31,680 --> 00:23:33,920
Speaker 2: why we haven't had more than ten teams up until

457
00:23:33,960 --> 00:23:36,240
Speaker 2: now is a. As we've been talking about, it's really expensive.

458
00:23:37,119 --> 00:23:40,680
Speaker 2: B it's also technically very complicated to build the types

459
00:23:40,720 --> 00:23:43,040
Speaker 2: of engines that you need in Formula one these days,

460
00:23:43,280 --> 00:23:45,440
Speaker 2: and the latest regulations of twenty twenty two are trying

461
00:23:45,440 --> 00:23:47,400
Speaker 2: to change that. They're trying to lower the barity entry.

462
00:23:47,440 --> 00:23:49,240
Speaker 2: We'll talk about the cost cap. They're also trying to

463
00:23:49,240 --> 00:23:52,919
Speaker 2: make the power units that much more simple so ensure

464
00:23:53,040 --> 00:23:56,640
Speaker 2: that more people can join the GRIT. So Andretti are

465
00:23:56,640 --> 00:23:58,720
Speaker 2: one of the few teams that put a bid forward.

466
00:23:58,800 --> 00:24:01,480
Speaker 2: But here's where the problem it. First of all, we've

467
00:24:01,520 --> 00:24:04,200
Speaker 2: seen in the news the FA pushing for a desire

468
00:24:04,240 --> 00:24:08,080
Speaker 2: to have an eleventh team. Mohammed bin Sulaam, which is

469
00:24:08,119 --> 00:24:10,280
Speaker 2: the president of the FIA, has been very vocal about this,

470
00:24:10,320 --> 00:24:12,280
Speaker 2: But the problem is he doesn't actually have that much

471
00:24:12,320 --> 00:24:14,359
Speaker 2: of a say. And then you've got the teams on

472
00:24:14,400 --> 00:24:17,399
Speaker 2: the other hand, who've been pretty negative and averse to

473
00:24:17,400 --> 00:24:18,480
Speaker 2: adding an eleventh team.

474
00:24:18,720 --> 00:24:21,639
Speaker 3: Business is on fire. The sport's never been in a

475
00:24:21,680 --> 00:24:24,399
Speaker 3: better place, and I believe if it ain't broken, on

476
00:24:24,480 --> 00:24:26,399
Speaker 3: need to fix it. So I'm a strong believer that

477
00:24:26,440 --> 00:24:28,879
Speaker 3: it's working really well with ten teams right now and

478
00:24:28,960 --> 00:24:30,359
Speaker 3: believe that's the way it should stay.

479
00:24:30,440 --> 00:24:33,880
Speaker 4: There's just a concern from the teams that an eleventh

480
00:24:33,920 --> 00:24:37,800
Speaker 4: team will cut into their profits because price money is

481
00:24:37,840 --> 00:24:42,080
Speaker 4: distributed from a pot, so everyone takes out of this

482
00:24:42,200 --> 00:24:45,280
Speaker 4: pot based on their performance. If you have an eleventh

483
00:24:45,320 --> 00:24:48,639
Speaker 4: team that starts scoring points, that's per You know the

484
00:24:48,680 --> 00:24:51,600
Speaker 4: teams are seeing it is they've taken points away from us.

485
00:24:51,880 --> 00:24:53,680
Speaker 4: So now all these teams are saying, hey, I don't

486
00:24:53,920 --> 00:24:55,880
Speaker 4: I don't want to have anyone in here. It's bad

487
00:24:55,920 --> 00:24:56,800
Speaker 4: for the bottom line.

488
00:24:57,000 --> 00:24:59,160
Speaker 1: Yeah, and there's more people on the.

489
00:24:59,080 --> 00:25:00,720
Speaker 2: Track, more people on the track.

490
00:25:00,840 --> 00:25:03,520
Speaker 1: What's unique about this sport is there's literally only so

491
00:25:03,640 --> 00:25:06,320
Speaker 1: much space on the track to add another car, another

492
00:25:06,320 --> 00:25:08,320
Speaker 1: person to crash into. If you can add another team

493
00:25:08,359 --> 00:25:11,160
Speaker 1: to the NHL that doesn't mean there's ten more people

494
00:25:11,200 --> 00:25:11,680
Speaker 1: on the ice.

495
00:25:12,720 --> 00:25:14,840
Speaker 2: That's actually I again, yeah, that's what I'm.

496
00:25:14,680 --> 00:25:18,440
Speaker 1: Here for, these fucking and brilliant statements, but that I

497
00:25:18,480 --> 00:25:20,640
Speaker 1: would not want if I'm driving, I don't want more

498
00:25:20,680 --> 00:25:23,400
Speaker 1: people on the street that I'm working on. Yeah, exactly.

499
00:25:23,480 --> 00:25:25,679
Speaker 2: So that's the tension that we're in right now, is

500
00:25:25,760 --> 00:25:28,679
Speaker 2: it's good for the sport to be seen adding more teams.

501
00:25:28,760 --> 00:25:31,560
Speaker 2: It's good for it to showcase that, hey, this sport

502
00:25:31,600 --> 00:25:34,199
Speaker 2: doesn't cost that much money, it's not that complicated. You

503
00:25:34,200 --> 00:25:36,720
Speaker 2: can actually join the party quote unquote. But at the

504
00:25:36,720 --> 00:25:38,639
Speaker 2: same time you've got attention from the teams, and so

505
00:25:38,680 --> 00:25:41,720
Speaker 2: there's things that have been shifting constantly. Of wall, how

506
00:25:41,800 --> 00:25:44,399
Speaker 2: much does it cost to be a part of these teams,

507
00:25:44,480 --> 00:25:47,600
Speaker 2: And they're now asking essentially the teams to prove that

508
00:25:47,600 --> 00:25:50,359
Speaker 2: they have one billion in their bank account to ensure

509
00:25:50,359 --> 00:25:53,280
Speaker 2: that they can keep paying to be a Formula one team.

510
00:25:53,359 --> 00:25:55,639
Speaker 1: Jeez, you gonna have a billion? Yeah, here comes to

511
00:25:55,720 --> 00:25:56,440
Speaker 1: the South East.

512
00:26:00,119 --> 00:26:04,359
Speaker 2: So, Michael, this is Tony of the Future interjecting in

513
00:26:04,440 --> 00:26:10,000
Speaker 2: here because oh, because we just got an update that

514
00:26:10,040 --> 00:26:13,480
Speaker 2: the Indretti bid was in fact dumtum dum.

515
00:26:13,960 --> 00:26:16,520
Speaker 9: They are not deemed fit to join the grid in

516
00:26:16,600 --> 00:26:21,240
Speaker 9: commercial terms by the sports commercial rights holder rejected. We

517
00:26:21,359 --> 00:26:26,440
Speaker 9: do not believe that the applicant would be a competitive participant.

518
00:26:26,680 --> 00:26:28,880
Speaker 2: They will not be a part of the F one

519
00:26:28,920 --> 00:26:31,400
Speaker 2: grid until at least twenty twenty eight.

520
00:26:31,560 --> 00:26:33,320
Speaker 1: Oh wow, that's a long way away.

521
00:26:33,359 --> 00:26:37,520
Speaker 6: This does put the FIA absolutely the regulator is absolutely

522
00:26:37,560 --> 00:26:41,560
Speaker 6: head to head with Formula one Management and Liberty Media,

523
00:26:42,000 --> 00:26:46,439
Speaker 6: the financial rights holders. Because FIA said yes, one.

524
00:26:46,359 --> 00:26:48,840
Speaker 2: Have said no, Okay, you can go back to the

525
00:26:48,880 --> 00:26:49,520
Speaker 2: present now.

526
00:26:50,119 --> 00:26:56,480
Speaker 1: Tony of the future. So how do these teams make money?

527
00:26:56,560 --> 00:26:59,440
Speaker 2: So, as we've discussed, it's the F one prize money,

528
00:27:00,320 --> 00:27:03,920
Speaker 2: it's also the sponsorship, and i'd say that sponsorship it's

529
00:27:04,080 --> 00:27:06,159
Speaker 2: give and take. It depends on different teams, but probably

530
00:27:06,160 --> 00:27:08,720
Speaker 2: accounts for about fifty percent of the money that they make.

531
00:27:09,400 --> 00:27:12,240
Speaker 2: And then if you're also a car manufacturer, you will

532
00:27:12,280 --> 00:27:15,399
Speaker 2: also make money from selling your engines to other teams.

533
00:27:15,640 --> 00:27:18,880
Speaker 2: But also maybe the applied science is what teams are

534
00:27:18,920 --> 00:27:24,720
Speaker 2: able to create and innovate behind closed doors they can

535
00:27:24,760 --> 00:27:25,439
Speaker 2: then sell.

536
00:27:25,560 --> 00:27:28,679
Speaker 1: So they're coming up with ideas and solutions and selling

537
00:27:28,680 --> 00:27:29,800
Speaker 1: them to their competitors.

538
00:27:29,960 --> 00:27:35,280
Speaker 2: Yes, so, for example, Ferrari is a works team that

539
00:27:35,400 --> 00:27:38,800
Speaker 2: sells their engine, also to Alpha Romeo. Mercedes is a

540
00:27:38,840 --> 00:27:41,080
Speaker 2: works team that develop an engine and a power unit

541
00:27:41,119 --> 00:27:43,359
Speaker 2: and sell it to Williams. And then you've got teams

542
00:27:43,359 --> 00:27:46,600
Speaker 2: also like Alpine whose engine is a Honel engine, but

543
00:27:46,680 --> 00:27:48,760
Speaker 2: they're not selling it to anyone else, so no one

544
00:27:48,800 --> 00:27:50,440
Speaker 2: wants to buy their engine, which we can go back

545
00:27:50,440 --> 00:27:53,560
Speaker 2: to Andretti Andretti's and talks of potentially buying their engine,

546
00:27:53,600 --> 00:27:56,000
Speaker 2: which they would love because it's another revenue stream for them.

547
00:27:56,000 --> 00:28:01,359
Speaker 1: I see, interesting, makes sense their side hustle, it's selling them, it's.

548
00:28:00,720 --> 00:28:05,080
Speaker 2: Side us, yes, Michael. So the other way to look

549
00:28:05,119 --> 00:28:07,560
Speaker 2: at it is if you look at the ten teams

550
00:28:07,560 --> 00:28:10,840
Speaker 2: we have on the grid, there's maybe different buckets. There's

551
00:28:10,840 --> 00:28:13,440
Speaker 2: the buckets of teams who are Calm manufacturers as well,

552
00:28:13,600 --> 00:28:17,520
Speaker 2: so McLaren Mercedes, Ferrari and you can kind of wrap

553
00:28:17,560 --> 00:28:19,520
Speaker 2: your head around why they would want to be informal one.

554
00:28:19,640 --> 00:28:22,560
Speaker 2: Obviously a Ferrari in the championship do very well. There's

555
00:28:22,600 --> 00:28:25,520
Speaker 2: a fair pretty straightforward line that says that they're probably

556
00:28:25,560 --> 00:28:28,960
Speaker 2: going to sell more Ferraris of their sports cards. That's

557
00:28:29,000 --> 00:28:32,359
Speaker 2: one bucket. There's the second bucket, which some would put

558
00:28:32,520 --> 00:28:35,440
Speaker 2: in the bucket of Oh, you've just got so much

559
00:28:35,480 --> 00:28:37,080
Speaker 2: money you don't know what to do with it, and

560
00:28:37,240 --> 00:28:39,960
Speaker 2: this seems like a great venture. You can think of

561
00:28:39,960 --> 00:28:43,440
Speaker 2: Aston Martin with Lawrence Stroll. We can also talk about

562
00:28:43,480 --> 00:28:45,840
Speaker 2: the fact that his son is one of the drivers

563
00:28:45,840 --> 00:28:47,960
Speaker 2: on that team. It's just like I've got some spare

564
00:28:48,000 --> 00:28:50,040
Speaker 2: cash in my back pocket. Let me have a former

565
00:28:50,120 --> 00:28:52,760
Speaker 2: one Telts and the Glamor Formal one looks good. And

566
00:28:52,800 --> 00:28:55,680
Speaker 2: then you've got a third bucket, which again goes a

567
00:28:55,720 --> 00:28:57,440
Speaker 2: little bit back to the history of Formula one. The

568
00:28:57,440 --> 00:28:59,520
Speaker 2: teams who've been there since they get go. You think

569
00:28:59,560 --> 00:29:03,240
Speaker 2: of the legas someone like Williams, someone like Ferrari who

570
00:29:03,480 --> 00:29:04,840
Speaker 2: you know, as I said, I think they've been there

571
00:29:04,880 --> 00:29:09,760
Speaker 2: since day one. Fun fact, both of those teams still

572
00:29:09,760 --> 00:29:11,520
Speaker 2: get a pot of money at the start of every

573
00:29:11,600 --> 00:29:15,120
Speaker 2: year to help them ensure that they never leave the sports.

574
00:29:15,320 --> 00:29:15,720
Speaker 1: Interesting.

575
00:29:15,800 --> 00:29:18,000
Speaker 2: It's like a little bit of a bonus bonus for

576
00:29:18,040 --> 00:29:20,480
Speaker 2: being there since day one. And I say a little

577
00:29:20,480 --> 00:29:22,240
Speaker 2: bit of bonus, it's something like, you know, ten to

578
00:29:22,280 --> 00:29:23,720
Speaker 2: twenty million that they get at the start of the.

579
00:29:23,840 --> 00:29:27,000
Speaker 5: Right there is only really one brand that transcends Formula

580
00:29:27,080 --> 00:29:30,040
Speaker 5: one is and is in this sense, perhaps you could

581
00:29:30,120 --> 00:29:34,440
Speaker 5: argue as big as or bigger than Formula one, and

582
00:29:34,600 --> 00:29:37,600
Speaker 5: that therefore it's removal from Formula one would cause a

583
00:29:37,680 --> 00:29:45,200
Speaker 5: seismic problem, a very serious problem. I mean other teams

584
00:29:45,240 --> 00:29:49,600
Speaker 5: having departed from the sport, such as Lotus, great pity, Brabham,

585
00:29:49,800 --> 00:29:54,400
Speaker 5: great pity, br In, great pity, Maserati, great pity. But

586
00:29:55,120 --> 00:29:57,160
Speaker 5: Ferrari is Ferrari. Ferrari is special.

587
00:29:57,440 --> 00:30:00,200
Speaker 1: I mean in tennis, you know, the top players get

588
00:30:00,200 --> 00:30:04,720
Speaker 1: appearance fees, whereas me and you wouldn't. I shouldn't speak

589
00:30:04,720 --> 00:30:06,320
Speaker 1: on your behalf. You might be an excellentennis but you

590
00:30:06,400 --> 00:30:08,840
Speaker 1: might deserve it an appearance fee. But you know, it's

591
00:30:08,920 --> 00:30:10,800
Speaker 1: kind of like, hey, Ferrari and Williams, you've been here

592
00:30:10,800 --> 00:30:12,680
Speaker 1: and there are huge names in the sports. So here's

593
00:30:12,680 --> 00:30:14,440
Speaker 1: a couple bucks, here's a couple It would piss me

594
00:30:14,440 --> 00:30:17,440
Speaker 1: off if I was a competitor, because of course that

595
00:30:17,480 --> 00:30:18,560
Speaker 1: money goes to helping you.

596
00:30:18,640 --> 00:30:21,240
Speaker 2: But that's interesting you bring that up, Michael, because essentially

597
00:30:21,280 --> 00:30:23,400
Speaker 2: all the teams are doing exactly that. With Hundrettick, which

598
00:30:23,680 --> 00:30:25,600
Speaker 2: we've been here for the last thirty forty years. You

599
00:30:25,640 --> 00:30:27,160
Speaker 2: don't get to just come in and take part of

600
00:30:27,160 --> 00:30:29,000
Speaker 2: the prize money. So it's interesting because it's that same

601
00:30:29,040 --> 00:30:31,240
Speaker 2: mentality that's still there because again there's so much money

602
00:30:31,240 --> 00:30:34,600
Speaker 2: that's being poured into it. There's a fourth bucket, which.

603
00:30:34,400 --> 00:30:35,440
Speaker 1: I think is you could a bucket.

604
00:30:35,480 --> 00:30:37,479
Speaker 2: There's so many buckets, but it's the last one, I promise,

605
00:30:37,880 --> 00:30:42,200
Speaker 2: which is more of like a marketing marketing stunt, though

606
00:30:42,240 --> 00:30:44,959
Speaker 2: stunt doesn't feel big enough. But you think of someone

607
00:30:45,080 --> 00:30:46,920
Speaker 2: like Red Bull and you go, why does a fizzy

608
00:30:46,960 --> 00:30:49,920
Speaker 2: drinks company pour a lot of their marketing budget into

609
00:30:49,960 --> 00:30:50,840
Speaker 2: this Formula one.

610
00:30:50,720 --> 00:30:54,320
Speaker 4: Team delivering their livery for the US Grand Prix this

611
00:30:54,400 --> 00:30:58,160
Speaker 4: year via helicopter? Who else is doing that? Who else

612
00:30:58,240 --> 00:31:01,120
Speaker 4: is thinking of like depositing their car into the middle

613
00:31:01,120 --> 00:31:05,800
Speaker 4: of Austin via helicopter just because it's cool? Red Bull

614
00:31:05,880 --> 00:31:08,160
Speaker 4: is because Red Bull's genius at marketing.

615
00:31:08,360 --> 00:31:09,920
Speaker 2: I don't know if you've seen these, Michael, these vox

616
00:31:10,040 --> 00:31:12,160
Speaker 2: pops of people in the street showing the ten logos

617
00:31:12,160 --> 00:31:14,560
Speaker 2: of the ten F one teams. The one that everyone

618
00:31:14,600 --> 00:31:17,440
Speaker 2: always recognizes is Red Bull. They're just like, oh, I

619
00:31:17,480 --> 00:31:19,280
Speaker 2: know what that is. And it's so funny that it's

620
00:31:19,360 --> 00:31:21,320
Speaker 2: not one of the Formula one teams, but the red

621
00:31:21,360 --> 00:31:23,640
Speaker 2: Bull brand is so strong outside of the sport that

622
00:31:23,680 --> 00:31:26,479
Speaker 2: it actually has helped them a fair amount.

623
00:31:26,760 --> 00:31:30,600
Speaker 4: Red Bull is going to sell you drinks because you're

624
00:31:30,640 --> 00:31:32,120
Speaker 4: going to look at that and be like, oh my god,

625
00:31:32,120 --> 00:31:32,840
Speaker 4: that's insane.

626
00:31:33,120 --> 00:31:37,120
Speaker 1: So Red Bull is selling enough little energy drinks to

627
00:31:37,200 --> 00:31:39,880
Speaker 1: make a rocket ship with wheels on it that keeps winning.

628
00:31:41,000 --> 00:31:43,680
Speaker 8: Just crunching the numbers here a little bit for you guys.

629
00:31:43,760 --> 00:31:47,960
Speaker 8: So the budget for running the team is one hundred

630
00:31:48,000 --> 00:31:51,560
Speaker 8: and fifty million, which maybe, yeah, maybe Tony can explain

631
00:31:51,640 --> 00:31:53,920
Speaker 8: has to do with the budget cap, the cost cap.

632
00:31:54,600 --> 00:31:57,720
Speaker 8: So you can buy about seventy five million Red Bull

633
00:31:57,760 --> 00:32:01,360
Speaker 8: cans with that, and last year they sold somewhere in

634
00:32:01,400 --> 00:32:04,280
Speaker 8: the area of eleven point five billion cans.

635
00:32:04,600 --> 00:32:09,120
Speaker 1: I mean, isn't anything. This just says that as a civilization,

636
00:32:09,560 --> 00:32:15,760
Speaker 1: we're very tired. We're just drinking such crap. I swear

637
00:32:15,800 --> 00:32:18,560
Speaker 1: to god, if people just drank more water, we would

638
00:32:18,600 --> 00:32:22,560
Speaker 1: be such a better place. Yeah, happier skin would be better,

639
00:32:22,640 --> 00:32:23,240
Speaker 1: stronger tea.

640
00:32:23,360 --> 00:32:27,640
Speaker 2: You've got a kind of red Ball in my bag.

641
00:32:28,240 --> 00:32:31,440
Speaker 2: I bought it so much that the team at red Bull.

642
00:32:31,520 --> 00:32:33,720
Speaker 2: Fun fact, now give me a crate. I love it,

643
00:32:34,960 --> 00:32:37,840
Speaker 2: which great, Just keep mine I don't drink coffee, so

644
00:32:37,880 --> 00:32:40,840
Speaker 2: I do drink red Bull and have since I was thirteen, bizarrely,

645
00:32:41,200 --> 00:32:43,000
Speaker 2: which was a fluke from my dad. He thought it

646
00:32:43,040 --> 00:32:43,760
Speaker 2: was fizzy water.

647
00:32:44,840 --> 00:32:47,600
Speaker 1: Well, you're dad, let's not let's not get in him, let's.

648
00:32:47,440 --> 00:32:49,240
Speaker 2: Not bring him into that. No, but the thing I

649
00:32:49,280 --> 00:32:52,240
Speaker 2: didn't want to say about the market.

650
00:32:52,760 --> 00:32:55,360
Speaker 8: Right, Actually, maybe we could posia for a second. So

651
00:32:55,360 --> 00:32:57,120
Speaker 8: you've been drinking red Bull.

652
00:32:57,400 --> 00:33:02,120
Speaker 2: He's worried about my health. Yes, yeah today.

653
00:33:02,320 --> 00:33:03,960
Speaker 8: I mean we haven't gone there yet, but I'm starting

654
00:33:04,000 --> 00:33:06,960
Speaker 8: to understand why you're a MAX for Stappen fan.

655
00:33:06,880 --> 00:33:08,320
Speaker 2: But I'm not a Max with Stappen fan.

656
00:33:08,400 --> 00:33:10,200
Speaker 1: You were saying good things are more of a defender

657
00:33:10,240 --> 00:33:15,800
Speaker 1: of him, exactly. I think red Bull found a market

658
00:33:15,840 --> 00:33:19,240
Speaker 1: share that didn't exist, breaking ground. The next one is

659
00:33:19,280 --> 00:33:26,800
Speaker 1: liquid death. It's water, but it's marketed water, and that's

660
00:33:26,920 --> 00:33:28,960
Speaker 1: that might be the next one. For years, a bunch

661
00:33:28,960 --> 00:33:31,360
Speaker 1: of marketing fuck boys have tricked you into thinking that

662
00:33:31,400 --> 00:33:33,120
Speaker 1: water is just some girly.

663
00:33:32,920 --> 00:33:34,640
Speaker 2: Tricks for yoga ooms.

664
00:33:35,360 --> 00:33:38,160
Speaker 1: Just look at all the cute brand names and thank

665
00:33:38,200 --> 00:33:39,080
Speaker 1: you bottles.

666
00:33:39,480 --> 00:33:41,920
Speaker 2: Well, can we get here?

667
00:33:44,160 --> 00:33:46,840
Speaker 1: What's this cost capting you keep bringing up? Is that

668
00:33:46,920 --> 00:33:48,080
Speaker 1: like salary cap.

669
00:33:48,720 --> 00:33:51,840
Speaker 2: No, but that has been a conversation. Should you cap

670
00:33:51,920 --> 00:33:54,280
Speaker 2: the driver's salary, which I am fervently against.

671
00:33:54,360 --> 00:33:58,280
Speaker 4: Okay, the Formula one cost cap is an artificial limit

672
00:33:58,480 --> 00:34:01,320
Speaker 4: on how much every form Milue one team is allowed

673
00:34:01,360 --> 00:34:04,040
Speaker 4: to spend on certain things like the development of their

674
00:34:04,080 --> 00:34:08,360
Speaker 4: car and the salaries of some personnel. Previously, Mercedes was

675
00:34:08,400 --> 00:34:12,520
Speaker 4: spending over four hundred million dollars to win the World Championship,

676
00:34:13,160 --> 00:34:15,600
Speaker 4: while you had a team like Williams that was like

677
00:34:15,840 --> 00:34:19,920
Speaker 4: maybe ten million dollars. You know, they just didn't have

678
00:34:20,000 --> 00:34:23,680
Speaker 4: the funding to be able to match that. Limiting the

679
00:34:24,080 --> 00:34:26,520
Speaker 4: expenditure of the teams to about one hundred and fifty

680
00:34:26,520 --> 00:34:31,680
Speaker 4: million dollars every year in theory, should help level the

681
00:34:31,680 --> 00:34:34,680
Speaker 4: playing field because something like you know, Red Bull can't

682
00:34:34,920 --> 00:34:37,080
Speaker 4: go out and spend all of this extra money.

683
00:34:37,719 --> 00:34:42,279
Speaker 7: However, you know, certainly not aware of any see the

684
00:34:42,800 --> 00:34:45,279
Speaker 7: accounts or submitted way back in March. So it's been

685
00:34:45,280 --> 00:34:47,480
Speaker 7: a long process with the FIA.

686
00:34:47,760 --> 00:34:50,799
Speaker 4: You can. We saw that with Red Bull they were

687
00:34:50,920 --> 00:34:52,959
Speaker 4: accused of exceeding the cost cap.

688
00:34:53,040 --> 00:34:54,920
Speaker 7: That's complete rubbish. I mean we heard from the FIA

689
00:34:55,000 --> 00:34:58,840
Speaker 7: ten days ago asking some questions for clarifications as you

690
00:34:58,840 --> 00:35:00,160
Speaker 7: would do in a standard All.

691
00:35:00,239 --> 00:35:01,960
Speaker 4: They claimed it was through catering.

692
00:35:02,239 --> 00:35:03,960
Speaker 1: So it's just some really fancy sandwiches.

693
00:35:04,080 --> 00:35:07,200
Speaker 4: Yeah, just really really expensive little finger sandwiches.

694
00:35:07,320 --> 00:35:07,719
Speaker 2: That's it.

695
00:35:08,000 --> 00:35:08,960
Speaker 1: Who's checking all this.

696
00:35:09,239 --> 00:35:12,560
Speaker 4: The FIA is looking into all of those finances to

697
00:35:12,640 --> 00:35:16,440
Speaker 4: make sure that everything is kosher. But you don't go like,

698
00:35:16,480 --> 00:35:18,640
Speaker 4: you don't get in a Formula one team if you

699
00:35:18,760 --> 00:35:22,759
Speaker 4: don't find loopholes in everything that you do. And so

700
00:35:24,160 --> 00:35:27,680
Speaker 4: you know, we had teams like Red Bull that perhaps

701
00:35:27,760 --> 00:35:30,080
Speaker 4: spent a little bit more money than they were supposed to,

702
00:35:30,520 --> 00:35:32,399
Speaker 4: got away with it with nothing more than a slap

703
00:35:32,440 --> 00:35:34,920
Speaker 4: on the wrists and having to pay a certain large

704
00:35:34,960 --> 00:35:40,120
Speaker 4: fine for the pleasure. Because spending money is obviously the

705
00:35:40,120 --> 00:35:41,560
Speaker 4: answer to spending money.

706
00:35:42,320 --> 00:35:44,879
Speaker 1: Think about rich people with taxes. Think about I mean

707
00:35:45,080 --> 00:35:47,040
Speaker 1: is they're experts at cheating.

708
00:35:47,760 --> 00:35:49,640
Speaker 4: If you want to be in Formula one, you probably

709
00:35:49,680 --> 00:35:52,439
Speaker 4: want to cheat a little bit. Fudge the rules, find

710
00:35:52,440 --> 00:35:53,120
Speaker 4: the loopholes.

711
00:35:53,280 --> 00:35:57,920
Speaker 1: One thing is certain, Unlimited budgets does not guarantee victory.

712
00:35:58,200 --> 00:36:00,520
Speaker 1: We look at the New York Yankees like, yeah, they

713
00:36:00,560 --> 00:36:02,200
Speaker 1: buy everybody.

714
00:36:01,760 --> 00:36:01,920
Speaker 3: But.

715
00:36:03,480 --> 00:36:07,960
Speaker 1: Huge budgets definitely put you in a better chance for success.

716
00:36:08,160 --> 00:36:10,879
Speaker 1: So I like this cost cap a lot. Just think, Tony,

717
00:36:10,920 --> 00:36:13,920
Speaker 1: what about my original question, which was sponsorships in particular,

718
00:36:13,960 --> 00:36:16,200
Speaker 1: how can I get my face on the has or

719
00:36:16,239 --> 00:36:16,959
Speaker 1: Alpine car?

720
00:36:17,800 --> 00:36:20,560
Speaker 2: Don't you worry. I haven't forgotten. We are going to

721
00:36:20,640 --> 00:36:23,920
Speaker 2: get into this very important topic. But just after a

722
00:36:23,960 --> 00:36:25,279
Speaker 2: short break we better.

723
00:36:28,320 --> 00:36:30,520
Speaker 1: So what about sponsorships? You know, how much is it

724
00:36:30,560 --> 00:36:32,360
Speaker 1: going to set me back to put my face on

725
00:36:32,640 --> 00:36:36,439
Speaker 1: the Alpine car or the Hoss car or the Mercedes car.

726
00:36:36,600 --> 00:36:39,359
Speaker 4: Well, if you wanted to put your name in your

727
00:36:39,400 --> 00:36:43,320
Speaker 4: face on a Formula One car, I would recommend starting

728
00:36:43,719 --> 00:36:45,960
Speaker 4: the bottom of the grid and working your way up

729
00:36:46,080 --> 00:36:48,799
Speaker 4: because your numbers will get larger as you move up

730
00:36:48,840 --> 00:36:52,359
Speaker 4: to the more expensive and better performing teams. So if

731
00:36:52,360 --> 00:36:55,560
Speaker 4: you were to bring yourself to Williams and say I

732
00:36:55,600 --> 00:36:57,319
Speaker 4: would love my name and face on the car, what

733
00:36:57,360 --> 00:37:01,200
Speaker 4: can we work out? You were probably looking at somewhere

734
00:37:02,040 --> 00:37:05,920
Speaker 4: fifteen million a year and up fifteen million is of

735
00:37:06,080 --> 00:37:09,720
Speaker 4: probably a small little bit of you know, a little sticker.

736
00:37:10,719 --> 00:37:12,839
Speaker 4: You're not going to be a title sponsor, you are

737
00:37:12,840 --> 00:37:14,680
Speaker 4: not going to be a title partner. You're probably not

738
00:37:14,760 --> 00:37:19,160
Speaker 4: even gonna make your face on their overalls. But you're

739
00:37:19,200 --> 00:37:22,879
Speaker 4: on the car in a little spot looks cool if

740
00:37:22,920 --> 00:37:26,160
Speaker 4: you are looking for like a Mercedes or something, those

741
00:37:26,280 --> 00:37:29,200
Speaker 4: deals start getting into the hundreds of millions of dollars

742
00:37:29,280 --> 00:37:32,360
Speaker 4: just because they are so high profile. They know that

743
00:37:32,400 --> 00:37:34,160
Speaker 4: they're going to be out there competing at the front

744
00:37:34,160 --> 00:37:36,239
Speaker 4: of the field, so you better be able to.

745
00:37:36,200 --> 00:37:39,560
Speaker 2: Pay up for that. So there's two things here. There's

746
00:37:39,640 --> 00:37:43,040
Speaker 2: name title sponsors, so it's in the name. So for example,

747
00:37:43,080 --> 00:37:47,399
Speaker 2: it's Aston Martin, Ramco, Cognisant Formula one. That's the that's

748
00:37:47,400 --> 00:37:50,439
Speaker 2: a mouthful, that's the full length of their actual name.

749
00:37:50,640 --> 00:37:53,600
Speaker 2: So as a title sponsor, they have Cognisant and a Ramco.

750
00:37:53,800 --> 00:37:56,200
Speaker 1: That's why they're not winning. All those letters are weighing

751
00:37:56,200 --> 00:37:56,600
Speaker 1: them down.

752
00:37:56,840 --> 00:37:59,759
Speaker 2: It's funny you bring that up because, and I'm just

753
00:37:59,760 --> 00:38:03,320
Speaker 2: going to weave this in here, one of the tensions

754
00:38:03,320 --> 00:38:05,840
Speaker 2: between the marketing team and the development team in and

755
00:38:05,920 --> 00:38:08,480
Speaker 2: Formula one car is the marketing team has promised and

756
00:38:08,520 --> 00:38:10,400
Speaker 2: sold all of this sponsorship, which we'll get back to

757
00:38:10,440 --> 00:38:12,600
Speaker 2: in a second, and they now have to slap all

758
00:38:12,600 --> 00:38:15,480
Speaker 2: of these logos on the car, and the mechanics are saying, WHOA,

759
00:38:15,520 --> 00:38:17,920
Speaker 2: WHOA hold them minute. That's weighing us down. So can

760
00:38:17,960 --> 00:38:20,239
Speaker 2: we scrapp all of this paint off. So again it's

761
00:38:20,280 --> 00:38:20,879
Speaker 2: another one of.

762
00:38:20,800 --> 00:38:24,080
Speaker 1: Those use a fourteen fon just like we gotta use

763
00:38:24,120 --> 00:38:24,719
Speaker 1: a six five.

764
00:38:25,080 --> 00:38:29,000
Speaker 2: Every little ounce of page matters. So that's the first

765
00:38:29,000 --> 00:38:31,320
Speaker 2: thing to know about title sponsors. So the title sponsors

766
00:38:31,360 --> 00:38:33,759
Speaker 2: pay an absolute fortune. That's how the team. And you

767
00:38:33,760 --> 00:38:35,680
Speaker 2: look at some teams like there's a team like McClaren

768
00:38:35,719 --> 00:38:38,600
Speaker 2: that I think have over forty partners and sponsors.

769
00:38:38,640 --> 00:38:42,719
Speaker 1: Who is sponsoring? Who are these companies? Anybody? What about

770
00:38:42,719 --> 00:38:45,239
Speaker 1: the bodega down there, which I do not recommend.

771
00:38:45,360 --> 00:38:51,160
Speaker 2: Okay, good to know almost anyone can sponsor a Formula

772
00:38:51,200 --> 00:38:54,480
Speaker 2: one team or a Formula one carney. Money that's the

773
00:38:54,480 --> 00:38:58,120
Speaker 2: big thing. And we've had wild stories of quite literally

774
00:38:58,239 --> 00:39:01,759
Speaker 2: Nigerian princes coming in slapping their name on the We've

775
00:39:01,800 --> 00:39:05,839
Speaker 2: had you heard the story of Rich Energy last year.

776
00:39:06,360 --> 00:39:09,880
Speaker 2: We've had people with products that don't exist in the

777
00:39:09,920 --> 00:39:13,440
Speaker 2: sports that have promised money. Whether the money is there

778
00:39:13,480 --> 00:39:15,560
Speaker 2: or not, there is a whole thing. There's a couple

779
00:39:15,800 --> 00:39:18,719
Speaker 2: I think of categories that are banned. Big tobacco is

780
00:39:18,719 --> 00:39:21,160
Speaker 2: one of them. So if one was obviously high highly

781
00:39:21,239 --> 00:39:24,319
Speaker 2: highly sponsored by Big Tobacco back in the day, then

782
00:39:24,360 --> 00:39:27,200
Speaker 2: it went into alcohol, then it went into big tech,

783
00:39:27,280 --> 00:39:29,120
Speaker 2: and now it's gone into a little bit of crypto.

784
00:39:29,200 --> 00:39:31,160
Speaker 2: I think lasting nine out of the ten teams had

785
00:39:31,160 --> 00:39:35,600
Speaker 2: a crypto sponsor. Have you ever heard, Michael of the

786
00:39:35,640 --> 00:39:41,960
Speaker 2: barcode livery saga? Tobacco advertising was banned in almost all

787
00:39:42,000 --> 00:39:45,399
Speaker 2: sports from a European directive in two thousand and six

788
00:39:45,840 --> 00:39:48,360
Speaker 2: Ferrari at the time. You remember the big Marlblo logo

789
00:39:48,400 --> 00:39:50,799
Speaker 2: that they had on the side of their car. They

790
00:39:50,840 --> 00:39:54,600
Speaker 2: thought it would be genius to redesign the livery with

791
00:39:54,840 --> 00:39:57,160
Speaker 2: just basically like a barcode that looked on the side,

792
00:39:57,320 --> 00:40:00,920
Speaker 2: But when that car is driving paw you at high speed,

793
00:40:01,000 --> 00:40:04,840
Speaker 2: you get the Marlbo chevron and it's basically the Marlbo genius.

794
00:40:04,920 --> 00:40:07,399
Speaker 2: I will give credit where credit is due, and it's

795
00:40:07,440 --> 00:40:09,959
Speaker 2: only when the promoters realize the car going by really

796
00:40:09,960 --> 00:40:13,359
Speaker 2: fast and they were like old on a second, and

797
00:40:13,800 --> 00:40:15,960
Speaker 2: they're not the only ones. But just to say big

798
00:40:16,000 --> 00:40:20,239
Speaker 2: tobacco is still in some way, shape or form involved

799
00:40:20,320 --> 00:40:23,200
Speaker 2: in Formula one. I think obviously things like arms and

800
00:40:23,239 --> 00:40:25,799
Speaker 2: weapons like that's another market that they just wouldn't take.

801
00:40:26,440 --> 00:40:28,719
Speaker 2: But other than that, I think the teams on the

802
00:40:28,760 --> 00:40:31,080
Speaker 2: sport will take money from just about but.

803
00:40:30,960 --> 00:40:34,279
Speaker 1: It's never it's never like super healthy stuff, you know,

804
00:40:34,360 --> 00:40:40,120
Speaker 1: it's never like carrots. You know, it's always something nefarious.

805
00:40:40,160 --> 00:40:42,239
Speaker 1: But I guess that says more about our culture and

806
00:40:42,239 --> 00:40:44,640
Speaker 1: what we spend money on. I mean, wouldn't it be

807
00:40:44,719 --> 00:40:47,040
Speaker 1: cool though, if alfa Romeo had like a bunch of

808
00:40:47,040 --> 00:40:48,040
Speaker 1: carrots on its side.

809
00:40:48,120 --> 00:40:52,200
Speaker 4: So let's get started for this absolutely delicious salad.

810
00:40:52,760 --> 00:40:55,080
Speaker 1: I wouldn't put it past them, you know, or has

811
00:40:55,120 --> 00:40:59,040
Speaker 1: We're missing a whole avocado thing. Yeah, the best two

812
00:40:59,280 --> 00:41:03,560
Speaker 1: vegetables avocado and hero right, the haas avocado.

813
00:41:03,920 --> 00:41:05,799
Speaker 2: So what I'm hearing from you, Michael, is you just

814
00:41:05,840 --> 00:41:09,759
Speaker 2: want to sally Now. I always recommend has avocados, but

815
00:41:09,840 --> 00:41:10,560
Speaker 2: you can go ahead.

816
00:41:10,600 --> 00:41:15,560
Speaker 1: I'm thinking maybe my face now that we're talking this out,

817
00:41:16,040 --> 00:41:19,120
Speaker 1: chewing a carrot on an Alpha Romeo on the nose.

818
00:41:19,440 --> 00:41:21,880
Speaker 1: That could be tricky because the carrot. But anyways, I'll

819
00:41:21,960 --> 00:41:24,960
Speaker 1: check with my branding committee, my social media team, and

820
00:41:25,000 --> 00:41:27,960
Speaker 1: we'll get back to you on that. I like him, great,

821
00:41:29,120 --> 00:41:30,080
Speaker 1: I'm fucking starving.

822
00:41:30,200 --> 00:41:30,719
Speaker 2: That was a lot.

823
00:41:30,800 --> 00:41:33,200
Speaker 1: There's a lot. There's a lot in this episode on

824
00:41:33,280 --> 00:41:34,120
Speaker 1: how to make money.

825
00:41:34,320 --> 00:41:36,839
Speaker 2: So worth saying that we just this was the tip

826
00:41:36,880 --> 00:41:39,400
Speaker 2: of the iceberg, and there's probably a lot of things

827
00:41:39,440 --> 00:41:41,480
Speaker 2: that we've missed, and there's probably a lot more detail

828
00:41:41,560 --> 00:41:44,320
Speaker 2: that we can go into. But I'm curious after listening

829
00:41:44,360 --> 00:41:47,480
Speaker 2: to all of this and getting most, hopefully most of

830
00:41:47,480 --> 00:41:49,400
Speaker 2: your questions answered, do you think the business side of

831
00:41:49,480 --> 00:41:51,200
Speaker 2: Formula one is exciting? Do you think you could get

832
00:41:51,200 --> 00:41:51,799
Speaker 2: into it more?

833
00:41:51,920 --> 00:41:52,120
Speaker 4: Yeah?

834
00:41:52,160 --> 00:41:55,160
Speaker 1: I do. I mean what I love about the competitive

835
00:41:55,200 --> 00:42:00,960
Speaker 1: arena is that people are driven to six seed and

836
00:42:02,040 --> 00:42:09,520
Speaker 1: our creative, aggressive, persistent, and that definitely is being showcased

837
00:42:09,520 --> 00:42:12,080
Speaker 1: here from even just the way they manipulate the logo

838
00:42:12,280 --> 00:42:15,840
Speaker 1: or change it because they need the money to selling

839
00:42:17,239 --> 00:42:21,279
Speaker 1: power units to competitors. That's fascinating to me. So they're

840
00:42:21,320 --> 00:42:25,120
Speaker 1: willing to do whatever is needed to make money and

841
00:42:25,200 --> 00:42:28,760
Speaker 1: that definitely goes in line with my American capitalism upbringing.

842
00:42:29,719 --> 00:42:32,200
Speaker 1: And it doesn't surprise me that this is how Formula

843
00:42:32,239 --> 00:42:35,640
Speaker 1: one operates because it just feels like such a competitive,

844
00:42:35,719 --> 00:42:38,840
Speaker 1: high stakes arena where everything is on the table for

845
00:42:38,960 --> 00:42:42,719
Speaker 1: potential profit. I find it interesting. Yes, I could potentially

846
00:42:42,800 --> 00:42:44,440
Speaker 1: be a business fan of Formula one.

847
00:42:44,640 --> 00:42:54,719
Speaker 2: I like that.

848
00:42:56,080 --> 00:43:01,880
Speaker 8: This has been choosing sides, fection of Sports Illustrated Studios,

849
00:43:02,120 --> 00:43:07,320
Speaker 8: iHeart podcast and one oh one Studio Podcasts. The show

850
00:43:07,400 --> 00:43:12,000
Speaker 8: is hosted by Michael Costa and Tony Cowan Brown. This

851
00:43:12,080 --> 00:43:16,000
Speaker 8: episode was edited, scored, and sound designed by Senior producer

852
00:43:16,120 --> 00:43:21,520
Speaker 8: Jojai may Thadle. Scott Stone is the executive producer and

853
00:43:21,600 --> 00:43:25,280
Speaker 8: head of Audio, and Daniel Wexman is Director of Podcast

854
00:43:25,320 --> 00:43:29,960
Speaker 8: Development and production Manager at one O one Studios. At

855
00:43:30,040 --> 00:43:34,360
Speaker 8: iHeart Podcasts, Sean Titne is our executive producer and a

856
00:43:34,360 --> 00:43:38,120
Speaker 8: special thank you to Michelle Newman, David Glasser, and David

857
00:43:38,160 --> 00:43:42,040
Speaker 8: Hootkin from one O one Studios. For more shows from

858
00:43:42,080 --> 00:43:46,719
Speaker 8: iHeart Podcasts, go visit the iHeartRadio app, Apple Podcasts or

859
00:43:47,880 --> 00:43:52,600
Speaker 8: wherever you get your podcasts, and whatever you do, don't

860
00:43:52,640 --> 00:43:57,120
Speaker 8: forget to rate us and tell your friends. It really

861
00:43:57,120 --> 00:43:57,839
Speaker 8: does be a lot.

862
00:44:02,960 --> 00:44:05,000
Speaker 2: So you might think that Formula one is a race

863
00:44:05,080 --> 00:44:07,080
Speaker 2: and it's all about the speed and the money, but

864
00:44:07,120 --> 00:44:09,319
Speaker 2: the reality is Formula one is a lot like a

865
00:44:09,360 --> 00:44:11,880
Speaker 2: game of chess. So next week we're going in a

866
00:44:11,920 --> 00:44:14,000
Speaker 2: completely different direction and we're going to talk all things

867
00:44:14,040 --> 00:44:17,000
Speaker 2: game theory and strategy and explain why before the race,

868
00:44:17,080 --> 00:44:19,719
Speaker 2: each team comes up with a plan a b C D.

869
00:44:21,280 --> 00:44:22,160
Speaker 4: E.

870
00:44:22,800 --> 00:44:26,440
Speaker 2: In case you are wondering, Michael, Plan E apparently stood

871
00:44:26,520 --> 00:44:29,320
Speaker 2: for engine failure. A few laps after the team radio,

872
00:44:29,400 --> 00:44:31,480
Speaker 2: Carlo signs engine burst into flames.

873
00:44:33,040 --> 00:44:35,440
Speaker 9: No no, no no.

874
00:44:37,160 --> 00:44:39,560
Speaker 2: So now we know what plan E stands for. Let's

875
00:44:39,560 --> 00:44:42,640
Speaker 2: talk about what all the other plans mean for next week, Darling.

876
00:44:42,880 --> 00:44:44,759
Speaker 1: We'll see